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re: Man takes his own life after seeing $730K negative balance on Robinhood app
Posted on 6/18/20 at 2:14 pm to sweetwaterbilly
Posted on 6/18/20 at 2:14 pm to sweetwaterbilly
Was on the money board. The guy had a bull put spread and the short leg was executed. All he had to do was wait for Robinhood to close his long position.
I had this happen, I near shite my pants when I saw -$100k. But I knew that I had $99k in equity to balance most of it out. RH doesn't let you open options without collateral. The interface is simplistic, thus the big - number.
Basically your betting that a stock will stay above a certain value. But with this position, losses have a maximum loss.
I had this happen, I near shite my pants when I saw -$100k. But I knew that I had $99k in equity to balance most of it out. RH doesn't let you open options without collateral. The interface is simplistic, thus the big - number.
Basically your betting that a stock will stay above a certain value. But with this position, losses have a maximum loss.
1
Posted on 6/18/20 at 2:14 pm to X123F45
obviously you don't understand margin and option contracts...stay in your lane and you won't look like a fool 
Posted on 6/18/20 at 2:15 pm to GreatLakesTiger24
quote:
wrong again!
Please explain how you can go 3/4 mil in the hole on rainbow with only 16k invested.
I'll wait.
Posted on 6/18/20 at 2:17 pm to X123F45
That’s not what you said
Posted on 6/18/20 at 2:19 pm to sweetwaterbilly
quote:
I just went and browsed that thread. I think I'm a reasonably smart guy but holy shite I got lost real quick. I don't have the slightest idea what any of those dudes are talking about I'm man enough to admit when shite is just plain over my head
I'm watch the money board all the time and yes, like you, when they start talking options and puts and calls and legs, I don't know WTF they're talking about.
Posted on 6/18/20 at 2:19 pm to X123F45
Theoretically if he just sold a bunch of puts he could be $750k with a net debit on the initial trade.
But I would guess even Robinhood won’t let you sell 3/4 mil worth of unsecured put options with only $16k in your account.
But I would guess even Robinhood won’t let you sell 3/4 mil worth of unsecured put options with only $16k in your account.
Posted on 6/18/20 at 2:23 pm to sweetwaterbilly
I had bought like 10,000 shares of some penny stock and opened my e-trade account to see that I was Beverly Hill Billies rich. Turns out someone punched in some numbers wrong when they were buying and paid something like 6 dollars a share for 10 shares. Sadly I couldn't get anyone to buy my shares for that price. I need to check on that etrade account........
Posted on 6/18/20 at 2:25 pm to iAmBatman
quote:
obviously you don't understand margin and option contracts...stay in your lane and you won't look like a fool
And obviously you ignored he's a college kid with 16k. Not someone with 300k to play with.
Posted on 6/18/20 at 2:29 pm to KamaCausey_LSU
quote:
RH doesn't let you open options without collateral.
I can corroborate this, you can’t sell options without holding the underlying cash or stock. There is even a pop-up box when you try to sell naked that tells you why you can’t. They hold the cash in escrow, not sure about stock.
Posted on 6/18/20 at 2:32 pm to sweetwaterbilly
Dude though he lost 730k he never had and killed himself over it?
Posted on 6/18/20 at 2:34 pm to sweetwaterbilly
Pretty pathetic to be honest. To immediately kill yourself without thinking "how the fk could this even happen?"
Posted on 6/18/20 at 2:38 pm to kojak
Did this dude just read Wall Street bets
Posted on 6/18/20 at 2:38 pm to JDPndahizzy
I learned some about options when I was in school. It's easier to see when you have some problems, and you can see how the numbers move. Then you get used to the lingo. But I've never used them in my personal life, and the little bit of conceptual I knew I've forgotten. I'd have to sit and think about the mechanics to get fresh on it, and even then the practical world of options I'm sure is something that would probably blow my mind.
A good example that I used to like to go over was the Trading Places scenario, which is supposed to be reasonably realistic, if simplistic.
A good example that I used to like to go over was the Trading Places scenario, which is supposed to be reasonably realistic, if simplistic.
This post was edited on 6/18/20 at 2:40 pm
Posted on 6/18/20 at 2:40 pm to sweetwaterbilly
quote:
I just went and browsed that thread. I think I'm a reasonably smart guy but holy shite I got lost real quick. I don't have the slightest idea what any of those dudes are talking about I'm man enough to admit when shite is just plain over my head
The TL;DR version is that the guy didn’t actually owe $730k, because that number didn’t account for his hedge (the put options he had bought).
I had a longer explanation typed then realized this ain’t the place for options class.
Posted on 6/18/20 at 2:41 pm to sweetwaterbilly
I'm sure there were several underlying issues with this kid other than a bug with the Robinhood app. Sad, but mentally stable people do not automatically think of suicide as a solution to problems.
Posted on 6/18/20 at 2:44 pm to LegendInMyMind
quote:
That's the problem with successful suicides; they can't be reversed.
I feel bad that I'm laughing
Posted on 6/18/20 at 2:45 pm to sweetwaterbilly
Would have been a sweet write off
Posted on 6/18/20 at 2:48 pm to Shexter
quote:Yep one of the most popular fiction authors of all time
Have you heard of Charles Darwin
Posted on 6/18/20 at 2:53 pm to sweetwaterbilly
After seeing their football fans on Iowa boards the last decade, I always knew Nebraska was full of reactionary morons, but this is just off the charts.
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